Oil prices surged in early Asian trade on Monday as tensions in the Middle East escalated with the United States striking Iran for a ninth consecutive night and a vessel catching fire in the Strait of Hormuz. The gains reflected growing fears that renewed fighting in the region could disrupt oil shipments through the strait, a critical corridor for global energy. Brent crude for September delivery rose 2.72 percent to $90.50 a barrel by around 0100 GMT, briefly crossing $91, its highest price since June. US benchmark West Texas Intermediate gained 2.39 percent to $84.46.
Escalating Tensions
US President Donald Trump told reporters Sunday evening that the United States was hitting Iran "very hard" in retaliation for the recent deaths of American troops in the Middle East. Separately, Kuwait's military said Monday it was responding to an Iranian drone attack targeting its territory.
Incident in Hormuz
Britain's maritime security agency UKMTO reported a ship was on fire in the Strait of Hormuz on Monday, in waters around 15 kilometres northwest of Oman. The cause of the blaze was not specified.
Market Reactions
The combination of ongoing US strikes on Iran and the incident in the Strait of Hormuz has heightened concerns over potential disruptions to oil supply, driving up prices. The Strait of Hormuz is a vital route for global oil shipments, and any instability in the region can have significant impacts on oil markets.
